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Core ZA provides the following information: Actual sales: Estimated sales: April R100 000 July R100 000 May R80 000 August R110 000 June R90 000
Core ZA provides the following information: Actual sales: Estimated sales: April R100 000 July R100 000 May R80 000 August R110 000 June R90 000 September R120 000 October R100 000 Relevant information: . Rent expense is R4 600 per month. Salaries are paid in the same month and is estimated for July at R11 500, August R11 000 and September R12 000. Payments are made in the month in which the expense occurs. 40% of sales are for cash, with the remaining 60% collected in the month following the sale. Purchases are 80% of the sales per month. Purchases are purchased and paid in the same month. Core ZA plans to pay R6 000 in cash for the manager's new desk in July. A provisional tax payment for R15 000 must be made in September. Interest on a loan from South Bank is R10 000 for the year. Quarterly interest payments are made and the next one is due in September. Core ZA's ending cash balance for June is R55 000. There is no inventory on 30 June or 30 September. Required: Prepare the following tables for July, August and September. a) Projected cash receipts b) Projected cash disbursements c) Cash budget
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